Money Matters
HOW CAN I BE RESPONSIBLE WITH MY MONEY WHILE ABROAD ''' Studying abroad offers firsthand practice in comparative economics, monetary systems and personal management of money. You will rage and rejoice at the fluctuating dollar and learn how to protect your dwindling hoard. To avoid unpleasant surprises and emergencies later, try to plan ahead right now. Remember to include a little cushion in your budget. Some students have expenses that they do not anticipate, such as additional books and ATM charges from their bank in the U.S. Begin by building an overall budget. Seek the help of those who will assist you in meeting the bills: your family, college financial aid officer, and banker. Show them your estimates and figure out how the money can be ready when needed. Personal spending is obviously a highly individual issue. Your personal habits and family financial situation are major factors. Your outside expenses, exclusive of any traveling you choose to do, should not be much higher than in the United States, assuming you do not change your spending habits. If you travel during vacation periods, of course, more money should be budgeted. Use the expense estimates provided in this handbook for clues on what to expect. After your first few weeks abroad, you will get a better feel for the actual costs you will incur on a weekly basis. With this knowledge, create a personal budget and stick to it. Save receipts and keep accurate records of money spent. The Center for Experiential Learning will survey returning students regarding their personal expenditures while abroad. You can help future students determine their financial needs by submitting accurate reports for such expenditures as food, travel, transportation, and entertainment. Protect yourself by establishing an emergency fund that will cover you in the event of lost or stolen items, an emergency night’s lodging, etc. '''WHAT KINDS OF THINGS ARE INCLUDED IN THE COST OF THE PROGRAM? Loras College charges a comprehensive fee to cover these program elements: excursions, room, board and instruction. The comprehensive fee also covers the administrative costs involved in planning, organizing and operating the program. WHAT DO I HAVE TO PAY FOR OUT-OF-POCKET WHILE I’M ABROAD? Students pay from their own pockets for a number of personal expenditures such as travel from home to classes, meals not taken with the host family, books, insurance, medical charges, recreation and entertainment. These costs vary greatly from person to person just as they do in the United States. Note that the costs of scheduled field trips and excursions are built into the comprehensive fee of the program. CAN I WORK WHILE I’M ABROAD? You may not work abroad during your study abroad experience. In order to work in another country you must have a work VISA. It is illegal to hold a job without one. Any student caught being unlawfully employed will be subjected to discipline by officials in your host country. MONEY MANAGEMENT ABROAD There are a number of ways to carry, change and receive money while you are abroad. We suggest meeting with a personal banker for professional advice before you leave. Listed below are some of the most common methods of money management abroad. DO I NEED AN ATM CARD TO GO ABROAD? Yes. Having an ATM card is the easiest way to get money abroad and is essential for most students. Remember to apply early for an ATM card if you do not already have one; usually it takes a month to two months to receive one. You must nofify your bank to make sure your ATM card will be accepted abroad and to alert them that you will be using your card overseas. Also, use your ATM card at least once during the month prior to departure in order for it to work for you abroad. Automatic teller machines are widely available in Europe and South Africa. They generally work with most U.S.-issued bank and credit cards (especially those on the Cirrus or Plus networks) and usually will only be able to access a checking account for funds. If you plan to use an ATM card, be sure you transfer sufficient funds into your checking account before you leave. It is also strongly recommended that you arrange with your parents to have joint access to your account while you are in Spain so they can deposit money into your account. Leave some deposit slips for your parents in case they need to add money to your account. CAN I USE MY AMERICAN CREDIT CARD WHILE I’M ABROAD? Many students have found that a Visa, MasterCard or American Express card is a great way to get instant cash in an emergency or to use for traveling expenses. But be aware of the high service charges that most banks assess for cash withdrawals. It is recommended to have at least one major credit card to use for emergencies. In order to purchase online plane tickets, a credit card number must be given. With an American Express card, you may write up to $1,000 in personal checks with your home checking account every 21 days for a one percent commission. There are several banks that give cash advances with Visa or MasterCard. This method amounts to a loan, and you will pay a substantial interest rate for it. Be sure to check with your credit card company about the service charges associated with cash advances. Find out the daily limit on cash advances from your credit card ($100-150 is average). Do not charge over your credit limit! Credit card purchases in foreign currency typically result in a 0-3% foreign exchange fee, depending on the card. Some places will charge your card in US dollars, but there is usually a high fee for this service. SHOULD I GET TRAVELER’S CHECKS? Maybe, but you probably don’t need to. Traveler’s checks issued by companies such as American Express may be a good idea to bring and then exchange at the bank. Be sure to keep up accurate records of the checks you cash and where. Leave one copy of your check’s serial number at home and keep another copy with you separate from the checks. Traveler’s checks are still the safest way to carry money, but may not give you the best exchange rate and many places abroad may not accept them. They can also be a hassle to exchange but can be replaced if lost and serve as a good back-up to an ATM card. HOW DO I CHANGE MONEY WHILE ABROAD? You may want to exchange a small amount of money before going abroad. Keep in mind that many banks do not carry foreign currency so you should allow 6 – 8 weeks in case money needs to be ordered. Also, you tend to get a poor rate of exchange in the U.S. You will find many establishments abroad where money exchange services are offered. Banks are the best places because they usually offer the official rate and charge a reasonable commission. Banks are generally open fewer hours than in the United States, so learn your bank’s office hours. Take time to shop around for the best exchange rates and, whenever possible, try to avoid independent exchange booths located in tourist sections or money changing services at airports, hotels or train stations. These outlets often charge more than the official rate, plus a very high rate of commission or exchange fee. To change money, a passport or photo ID is often required. Bring a pocket calculator to check the accuracy of your receipt when changing money. When changing money at an ATM with credit or bank cards, it is not always possible to check the rate you are being offered or to establish if there is a commission fee accessed (some may be higher or lower). Check your receipt carefully and avoid that machine in the future if rates are excessive. It is a good idea to familiarize yourself with the current exchange rates before you go—check the Wall Street Journal, ''the financial section of your local newspaper, www.oanda.com or www.xe.com. '''Euro' The Euro is the official currency of Spain as well as Belgium, Germany, Greece, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Slovenia and Finland. Rand The Rand is the official currency of South Africa. Pula The Pula is the official currency of Botswana. HOW DO I AVOID GETTING MUGGED OR SCAMMED? Observe safety precautions with money. Do not keep large sums of cash in your room. Buy a traveler’s money belt or neck wallet and beware of pickpockets in crowds and on public transportation. Be especially careful and aware of your possessions when traveling through airports and crowded streets. Beaches are also a place where things are often stolen. When you can, keep your valuables at home, and just carry cash on you. CAN I GET STUDENT DISCOUNTS ON THINGS IN EUROPE? You will find that countries in Europe offer many more student discounts than what you find in the states. Museums, movie theaters, restaurants, and even clothing stores might offer a student price. Most reduced fees are for people 26 and under and you need to provide a student ID or ISIC card to receive them. Use your international student identity card, wherever possible, to receive substantial student discounts on goods, services and entrance fees. Read through the book that accompanies your ISIC card for names of establishments that honor it. FINANCIAL POLICIES: Scholarships, and payments The cost of studying abroad might not be as great as you first thought. DO I GET FINANCIAL AID WHEN I STUDY ABROAD? Loras is special in that most colleges do not continue their own scholarships and grants for students studying abroad. Loras believes in the benefits of studying another culture and in bringing that experience back to campus, and offers a continuation of all institutional, federal and state aid to its students who participate in Loras-sponsored programs abroad. CAN I GET SCHOLARSHIPS FOR STUDYING ABROAD? Study abroad students who receive Loras College scholarships will have their student account credited in the amount of the award. No cash payments will be made to the student. Please note that there are external scholarships available for students studying overseas. This includes the Gilman International Scholarship, which can be accessed online at www.iie.org/gilman. Ask the CEL for details. HOW DO I PAY FOR MY STUDY ABROAD PROGRAM? The Loras College Financial Aid Office requires payments to be made by January 15 for the second semester payment option. Students whose accounts are delinquent are not permitted to register and no semester grades or transfer of credits will be issued until the account is paid in full. IS THERE A MONTHLY PAYMENT PLAN? If you will be paying your fees directly to Loras College, you may apply for the monthly payment plan. This allows you to spread the program fees over the course of your semester abroad. Contact the Loras College Business Office at 563-588-7232 for further information. The payment plans for students studying abroad are on the same schedule as for those staying on campus. All fees are billed by the semester and become an obligation at time of registration. Statements will be sent to all registered students in early July for the fall term and in mid-December for the spring term. Full payment of the semester charges is due by August 10 for the fall semester and by January 10 for the spring semester. Loras College also offers an option of paying in four installments per semester. Details about this option are mailed to registered students in early July. A one percent (1%) interest charge per month (12%) annually is assessed on any unpaid charges older than 30 days. CAN I GET A REFUND IF I LEAVE THE PROGRAM OR DROP A CLASS? No. The program procedures on refunds are based on practical realities. Almost every part of the program (travel within the country, housing, and instruction) must be contracted and reserved with advance deposits and often with full payment. IS THE PROGRAM DEPOSIT REFUNDABLE? The $300 study abroad deposit is non-refundable. For tuition costs, Loras College follows the usual institutional and federal regulations in adjusting both charges and financial aid for the semester in Spain. WHAT HAPPENS IF A STUDENT IS INVOLUNTARILY DISMISSED? Students dismissed from the program by the on-site program director may submit a written account of the circumstances of their dismissal for inclusion in their personal file. The on-site program director is required to inform the CEL of the dismissal and its reason. No refunds are given for students dismissed from the program. Any unpaid balance on the student’s account will be due and payable at the time of dismissal.